Kia ora e te whānau
We are writing to update you on a recent decision made by our Trustees and Directors to change the annual balance date for our Trusts (Rangitāne o Wairau Settlement Trust and Te Rūnanga a Rangitāne o Wairau Trust) and Companies (Rangitāne Holdings Ltd and Rangitāne Investments Ltd) from March 31 to June 30, with immediate effect.
This means the balance date this year for all entities will be June 30, 2022.
This was a pragmatic decision to bring all our entities into line amid changes to accounting standards and requirements for the Group to carry its commercial investments at “fair value”. In accounting, ‘fair value’ means the estimated worth of a company’s assets and liabilities that are listed on a company’s financial statement.
Given that a number of our investments have a June 30 balance date, it made sense for the Trustees and Directors to agree to this change.
What was the alternative?
The other option would have been for us to engage independent professionals to determine the “fair value” of the iwi’s investments as of March 31, at a cost of more than $30,000 per year. Over a ten year period, this would equate to a spend of over $300,000. This is pūtea that the Trustees believe is better spent on delivering benefits and services to members, rather than engaging external accountants and valuers to provide valuations which are already done as part of each of the investment’s end-of-financial year process.
What does this mean for members?
This means that this year our Annual Report, our Annual General Meeting and our Trustee elections will be delivered later than usual. We are still working through exact timings but given the end of the financial year is pushed out by three months, you can expect the same for the Annual Report, Annual General Meeting and Trustee elections. We will provide you with an update as soon as the dates are confirmed.
You might have questions about this change so we’ve organised a hui at Ūkaipō and also one online for those of you who might like to discuss this further. Please see the details below.
We have also prepared some FAQs, below, which might help to answer any questions you have.
- Hui | Zoom | 27 July 2022 | 6pm
- Hui | Ūkaipō | 28 July 2022 | 6pm
Zoom link: https://us02web.zoom.us/j/83791608617?pwd=d2g3ZzJ4cXUxWFZ6YkREajRDNkxsUT09
Meeting ID: 837 9160 8617 | Passcode: 045657
Kaiwhakahaere Matua (General Manager)
Rangitāne o Wairau Group
Frequently Asked Questions
What is a balance date?
A balance date is the last day of an accounting year. For Rangitāne, our accounting year (or financial year) has run from April 1 to March 31, which is standard for personal tax and some businesses. However, many businesses also have a balance date of June 30.
What does “fair value” mean?
This is the price that would be received to sell an asset or paid to transfer a liability at the measurement date.
Why does the timing of the AGM and Annual Report need to change?
The Annual Report and AGM are tied to the financial statements, so any change to the timing of our balance date has a flow-on effect for the Annual Report and AGM.
Why does June 30 make more sense for Rangitāne?
Bringing all our entities and investments into line allows for a smoother reporting process and also means we make a saving of more than $30,000 a year in accounting and valuation costs.
What other options did the Trustees and Directors consider?
The other option would have been for us to engage independent professionals to determine the “fair value” of the iwi’s investments as of March 31, at a cost of more than $30,000 per year.
How does this impact the Trustee election process?
The Trustee elections are timed to fit in with the AGM. So, like the Annual Report and AGM, the timing of elections will also be pushed out.
Is this change related to the Trust Deed Review process?
No. The Trust Deed Review process is separate to the balance date change. There are no changes or amendments required to the Trust Deed to change the balance date for the Trust (or any of the entities that comprise the Rangitāne Group).
Why does Rangitāne need to comply with accounting standards?
Accounting standards are mandatory for companies so that financial statements are comparable with other companies. Banks and regulators rely on accounting standards to ensure the information provided is correct.
Did Rangitāne seek independent advice on the changes?
Yes. Rangitāne sought independent legal and accounting advice in relation to the proposed options and change of balance date. The proposal to change the balance date was supported by our Audit, Risk and Compliance Committee, and then subsequently unanimously agreed to by the Trustees and Directors.